23 June 2026
The Federal Government’s recent decision to limit negative gearing on residential property to new builds from 1 July 2027 is already showing signs of reshaping property investor demand.
While existing property owners will retain current arrangements, future investors seeking to access the benefits of negative gearing will increasingly need to focus on newly constructed housing. The changes are designed to encourage investment in new housing supply and one product type attracting growing attention is dual-key housing.
Across South East Queensland, KDL is seeing more interest in duplex products, which offer the potential to generate income from two separate tenancies while retaining the advantages associated with new construction.
KDL Property Group Managing Director Kent Leicester said the budget changes were likely to accelerate an investment trend that had already been gathering momentum.
“We’re already seeing increased interest in dual-key product across the broader investor market following the budget announcement,” he said.
“Investors are naturally looking at how they can maximise returns from new housing stock, and properties capable of generating income from two tenancies are attracting significant attention.
“When you combine the potential tax advantages available to new builds with the opportunity for stronger rental yields, it’s easy to see why this type of product is becoming increasingly attractive.”
The appeal of dual-key comes at a time when many Queensland markets continue to experience strong population growth, low vacancy rates and sustained demand for affordable rental accommodation.
Importantly, dual-key housing is increasingly being recognised as part of the solution to the nation’s housing shortage.
These homes increase housing supply within established communities, make more efficient use of infrastructure and provide greater housing choice without requiring higher-density apartment development.
Recognising the long-term demand for this style of housing, KDL and its construction division, Ryse Construction, have invested heavily in dual occupancy and duplex product over recent years.
The group has delivered a growing pipeline of these homes across multiple communities while refining designs and construction methods to suit institutional investors, affordable housing providers and other large-scale housing partners.
“We identified this trend several years ago and made a conscious decision to focus on delivering high-quality dual-key product,” Kent said.
“Through the combined capabilities of KDL and Ryse, we’ve developed considerable expertise in this space and continue to see strong demand from the market.”
